Technical Analysis – NZDUSD rally stops at key area
October 11, 2023 8:27 amVideo
Latest News
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
NZDUSD trades sideways amidst geopolitical developments
The current short-term upleg started when NZDUSD failed to break 0.5870
Momentum indicators are somewhat supportive of the current move
NZDUSD is trading sideways today after registering five strong green candles. It tested the 0.5870 level multiple times during September, but it failed to break it thus fuelling the current short-term rally. It has now reached a key resistance area, a tad below the lower boundary of the February-August rectangle.
Understandably, the focus is now on the momentum indicators and their likely support for the current move. More specifically, the Average Directional Movement Index (ADX) points to a weak bullish trend in the market, and the RSI remains a tad above its 50-midpoint. More importantly, the stochastic oscillator has jumped aggressively towards its overbought territory, potentially opening the door to a more protracted rally.
Should the bulls remain confident, they could try to overcome the busy 0.6060-0.6092 range, defined by the 38.2% Fibonacci retracement of the April 5, 2022 – October 13, 2022 downtrend, the July 14, 2022 low and the 100-day simple moving average (SMA). This would be the final step before pushing NZDUSD back inside the rectangle that has been in place since February 2023 and cancelling out the sell-off since early August.
On the flip side, the bears are probably determined to defend the key 0.6060-0.6092 area. If successful, they could then have a go at breaking the 0.5955 and 0.5920 levels set by the 50-day SMA and the May 15, 2022 low respectively. Even lower, the bears could then plot a course for the 23.6% Fibonacci retracement at 0.5870 that proved too strong during September.
To conclude, NZDUSD bulls have managed to stage a decent rally, but they probably need a break above the 0.6060-0.6092 range to confirm taking control of the market.
Related Posts: